Sellers Worry Rising Interest Rates Will Lower Buyer Demand
Sellers are planning to list their homes right away for fear that rising interest rates will lower the demand. Forty-seven percent of sellers say they are worried about rising rates, up from 23% last quarter.
Homeowners are also anticipating larger price gains with 17% staying they believe prices will rise “a lot” in the coming future. Seventy-five percent of homeowners that don’t plan to sell say they are happy with their home. A much smaller 12% of homeowners say they will rent out their home, which is down from 15 percent last quarter.
As for sellers back up plans, renting has been the less favorable option for the first time in four months. Forty-nine percent of sellers said they would consider renting rather than selling, which is down from 52% in the previous quarter and down 46% from a year ago.
While mortgage rates continue to rise, fewer homebuyers will refinance their mortgages. Thus far, potential homebuyers haven’t been deterred as home purchases inched up slightly by 0.5% for the week ending July 12.